South Carolina FHA Mortgage Loans

South Carolina FHA Mortgage Loans

More people than ever before who live in South Carolina are choosing FHA mortgage loans as a way to finance their home. It was only a few years ago that FHA was not really an option for many people due to the number of other loan programs – but now FHA has become almost the “loan of choice” for many people living in South Carolina. FHA loans are no longer just for first time home buyers or for people with less than perfect credit – they have become more “mainstream”.

Most people are aware that FHA isn’t actually a lender who lends you money, they only act as an insurance company and insure your loan in the event of default. This means that when you take out your FHA loan, you will be required to pay (up front) something called UFMIP — short for Up Front Mortgage Insurance Premium. This amount of money varies from 1.5% of your loan amount to 3% of your loan amount depending on loan program.

South Carolina FHA Mortgage Loan Highlights Include:

• FHA loans allow for seller-paid closing costs
• 3.5% down payment is required, but your down payment can be a gift from a blood relative
• On all FHA mortgages, you are required to pay monthly mortgage insurance
• FHA does not allow prepay penalties on FHA loans

South Carolina FHA Streamline Refinance

For those people who currently have an South Carolina FHA loan, when rates drop, the South Carolina FHA streamline refinance is the most popular way to lower their payment. The FHA streamline program allows you to get a lower rate and is the easiest way to do it. If you have made your mortgage payment on time for the last 12 months, chances are that you will qualify for the FHA streamline program.

South Carolina FHA 203k Streamline Program

The FHA 203k streamline program is the FHA loan of choice when you want to buy a home that is in need of a few repairs. The South Carolina FHA 203k streamline program allows people to finance up to 35,000 for eligible repairs and improvements and the money can be disbursed directly to the contractors who perform the work. 203k streamline loans can be tricky, so be sure to work with a loan officer who has experience helping people finance their home with a FHA 203k streamline loan.

South Carolina FHA 85% Cash Out Program

For people wondering how much of their equity they can access with an FHA loan, the anwer is 85% – as in FHA will allow you to get up to 85% of your homes value in the form of cash. Many people use this as a way to consolidate high interest credit cards or pay off other debts.